Question: U a (X,Y) = X^2 * Y U b (X,Y) = X*Y For consumer A MUx = 2XY MUy = X^2 For consumer B MUx

U a (X,Y) = X^2 * Y

U b (X,Y) = X*Y

For consumer A

MUx = 2XY

MUy = X^2

For consumer B

MUx = Y

MUy = X

Initial Endowments

Consumer A : 25 units of good X and 10 Units of good Y

Consumer B : 100 units of good X and 10 units of good Y

Now, Suppose Px or Price of good X = 1

A) What is the value of Py or Price of Y that will result in a competitive equilibrium?

B) How much of each good will each consumer demand in equilibrum?

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